Chloride was sold after it hit our target price. Whilst the group had delivered comparatively resilient revenues and a solid performance in its services division (in line with our modelling), we felt uneasy about the currency-inflated order book and the unsteady picture for the broader capital goods sector. After a call with the company, we were unable to raise our forecasts, owing to our outlook on medium-term growth prospects and a rather muted internal restructuring plan.
Chloride provides secure power solutions for critical business functions across a wide range of global industries, including energy (nuclear, oil and gas), IT and manufacturing. The main focus is on providing uninterruptible power supply (UPS) to keep businesses operating at all times. The business model is sensibly structured to deliver competitive power solutions, following up with higher-margin and more profitable system servicing (1/3rd revenues, and growing). Long-term market dynamics are strong - recent company announcements confirmed that demand has been resilient.
| Sedol |
Type |
Price |
Date |
| 195207 |
Sell |
£ 1.802 |
29/09/2009 |
| 195207 |
Buy |
£ 1.443 |
09/04/2009 | |
